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Investing.com -- Intuit on Thursday posted quarterly earnings and revenue above Wall Street expectations, but shares fell over 5% in extended trading. The analysts said the dip is likely due to slowing growth in Intuit ’s Global Business Solutions Group (GBSG) unit.
The financial software maker also issued a forecast for the new fiscal year that fell short of some investor hopes.
The maker of TurboTax and QuickBooks reported fourth-quarter earnings of $2.75 per share, beating analysts’ average estimate of $2.66.
Revenue rose to $3.8 billion, above expectations of $3.74 billion.
Intuit (NASDAQ:INTU) projected earnings of $22.98 to $23.18 per share and revenue of $20 billion to $21.2 billion for fiscal 2026 (FY26). Analysts were expecting $22.99 per share on revenue of $21.1 billion.
"We expected management to take a conservative stance with its initial FY26 guide, especially within GBSG, given less pricing tailwinds and what we view as a
somewhat more economically sensitive Payments/Payroll business," Stifel analysts said.
"The net result implies a >100bps decel in year-over-year growth for GBSG to 14-15% from 16.2%," they added.
Separately, Jefferies analysts said Intuit "started with the typical conservative guide."
"We remind investors that INTU has a history of beating initial guide, with FY25 also starting at 12-13% and ending +15.6%. Tough comps warrant conservatism," they added.
Chief Executive Sasan Goodarzi said fiscal 2025 had been “exceptional,” with revenue growing 20% in the fourth quarter and 16% for the year, highlighting role of artificial intelligence tools in boosting the company’s platforms.
(Pratyush Thakur contributed to this report.)